Transforming Corporate Administration through Artificial Intelligence: An Analysis of Strategic Decision-Making, Operational Efficiency, Ethical Governance, and Managerial Accountability
TL;DR
A strong positive relationship was found between the use of AI and the four dimensions of corporate administration that were investigated, thereby suggesting that the proposed integrated framework could serve as a basis for developing a theory and organizational practice for the future.
Abstract
Background: Artificial Intelligence (AI) has become a pervasive part of organisational activities, transforming it from a tool of the past into a fundamental tool of the modern administration and forcing scholars to rethink how AI is changing the nature of strategic decision-making, operational efficiency, ethical governance and managerial accountability (Weismann, 2024; Ouabouch & Yahyaoui, 2025). Research Problem: While there have been individual studies on the impact of AI in specific functional aspects like HR, marketing or finance, there is not yet a holistic understanding of the impact of AI on all these four interdependent pillars of corporate administration. Objectives: This study explores the effect of AI adoption on strategic decision-making, operational efficiency, ethical governance and managerial accountability, and suggests an integrated framework for AI-based Corporate Administration. Design: The quantitative, cross sectional survey design was used. Data collected were primary data, obtained by designing a structured questionnaire based on the 5-point Likert scale, which was then answered by 100 corporate managers, executives, department heads and employees. The primary data were then analysed by reliability test, descriptive analysis, correlation and regression analysis. Key Findings: Good internal consistency of the constructs was observed (Cronbach's alpha ranged from 0.90 to 0.92). Statistically significant and strong positive relationships were found between AI adoption and outcomes of strategic decision making, operational efficiency, moral governance, and managerial accountability (all p < .001) and explained 82% to 88% of the variance in each outcome. Practical Implications: The results indicate that corporate decision makers, boards, and policy makers should view the use of AI as an administrative strategy, not a mere technical upgrade, and implement algorithmic governance measures to address algorithmic risk. Conclusion: The findings indicate a strong positive relationship between the use of AI and the four dimensions of corporate administration that were investigated, thereby suggesting that the proposed integrated framework could serve as a basis for developing a theory and organizational practice for the future.